(Reuters) – Advanced Micro Devices on Tuesday forecast fourth-quarter revenue that fell just short of estimates, as supply chain constraints prevent the company from meeting strong demand for AI chips as the PC market slows is growing than some investors expected.

Shares of the Santa Clara, California-based company fell 5% in extended trading. The stock is up about 10% so far this year.

Demand for AI chips from major tech companies like Microsoft and Meta has grown much faster than their supply from AMD and larger rival Nvidia, limiting chip companies' ability to take advantage of the surge in orders.

AI chip production capacity will be very tight by 2025, the world's largest contract chipmaker TSMC said in July, posing a significant hurdle to supply of these advanced semiconductors.

The company expects fourth-quarter revenue of $7.5 billion, give or take $300 million, compared with analysts' average estimate of $7.54 billion, according to data compiled by LSEG .

The company reported third-quarter revenue of $6.82 billion, compared to estimates of $6.71 billion.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D'Silva)